When thinking of investment, people think of establishing a new business in a different country, but there are other ways of investment such as importing and exporting products or services. Peru is one of the fastest growing economies in the world, has a growing middle class, dynamic rates of GDP growth and low inflation and debt. With the well-established Port of Callao located in the center of Peru, next to the capital city of Lima, and several free trade agreements, Peru has established itself as a gateway for export and import businesses to conquer the market.
Peru is an important country regarding international trade and offers trade advantages such as:
- 21 Free Trade Agreements
- Growing Middle Class
- Geographic Location
- Pacific Ocean Coastline
- The Rainforest
- Variety of Flora and Fauna
- Highlands and Mountains
- Rich Mineral Resources
- Modernization of Infrastructure
Peru, with its great strategic location and diverse characteristics, represents a great opportunity for foreigners wanting to invest in Latin America.
Export Products from Peru
Peru’s strategic location, its strong capital city of Lima, natural resources, diverse characteristics and a variety of different climates and areas, make it the perfect country to export products. Main export products within the agricultural industry are asparagus, avocados, quinoa, cocoa, mandarins, and olives. And not to forget the Peruvian coffee industry, one of the main coffee producers worldwide with top flagship products are available on the market. On top of that, Peru offers a great variety of superfoods such as mangos, quinoa, and blueberries, and with the growing health trend in western countries, this makes them the perfect products to export. Peru also has a great variety of mineral resources including gold, copper, and zinc, offering international mining companies great investment opportunities. Apart from the above mentioned, the country offers export opportunities in other industries such as in the fishing and clothing industry. Nowadays, Peru’s exports are worth about $39 billion USD and are rising steadily with an annual average growth rate of 7.6%. The main export destinations are China and the United States.
Import Products into Peru
Also, imports increase on a yearly basis, offering international companies opportunities to offer their products in a new and emerging market. Most important at the moment are refined and crude petroleum, as well as chemicals. In the recent years, Peru’s middle class is growing and their buying power with them. This continuous growth offers new opportunities for foreign companies and over the past few years importing cars, computers and other technology equipment gained high importance. Apart from that, people are concerned more about health which offers import possibilities to international pharmaceutical companies in the Peruvian market. At the moment Peru’s main import partners are China and the USA, but imports from other South American countries are increasing.
How to Successfully Export and Import in Peru
Regarding the global enabling trade report of 2016 by the World Economic Forum, Peru ranked very well and is in 54th place. Still, when considering to export or import to Peru a lot of requirements have to be met. For example, depending on the product imported or exported different factors have to be fulfilled and different taxes are applied. Regarding the imports of pharmaceuticals or cosmetics, it is important to register products at the DIGEMID of the Ministry of Health and a sanitary registry must be obtained before exporting these products. General Peruvian law does not require a local agent for this process, however, in order to fulfill all requirements and to facilitate the whole process the service of a trade lawyer will be needed.
It is recommended to hire the services of a professional local company who can assist you throughout the importation/exportation process in Peru. Contact Biz Latin Hub- Peru to see how we can assist with your international trade investment. Reach out to Karl at [email protected] for more information.
If you want to learn about exporting and importing into other countries, read another article in this series for finding a trade lawyer in Mexico.
If you would like to form an export/import company or any kind of company in Lima, Peru start off with this video! If you want to know more about the services we offer, feel free to follow our social media accounts to stay updated on all the business trends and information in Latin America!